Peter Schiff on debt downgrade

your analogy doesn't work because the government is $14.6 trillion in debt but has revenues of $2.2 trillion

because the government's debt is 7 times its income, your analogy should be written "if someone makes $100k/year and has $700k in debt, is that bad?"

of course it is bad, especially if that persons accountant (the congressional budget office) projects that by 2021 their debt will double.

so if someone makes $100k a year and is $700k in debt and over the next 10 years their debt is projected to increase to $1.4 million, is that bad?
 
yep, there are plenty of ways to turn things like this into revenue projects.
ive worked on several.


and many turnpikes are financed thru municipal bonRAB
 
people had more available to spend because they could simply borrow whatever they needed.

So, instead of lowering the price of a new car a few grand, they just dropped the requirements for car loans. Which was easy to do because the car companies also owned banks.
 
I dont believe the rating agencies were concerned when they assumed 6 months ago a clean raise would happen.

it wasnt until the political buttfucking they became upset
 
I usually agree with Schiff's points, but the one thing I'm wondering after watching that video is he seems to be overly confident in the euro's recovery.

He mentions Italy's plan to solve it's debt problems, but he doesn't mention anything about Spain, Greece, Portugal, Ireland, France, Belgium, ect solving their financial issues. I may not know the details as well as I should, but I thought each one of those countries has a relativity serious issue with it's economy as well (some worse than others).

Hell even Germany which I consider to be a very hardworking, smart, reasonable (recently ) country has a debt of 80% of their GDP. It seems like he is underplaying the seriousness of Europe's issues and using small, well balanced countries as "good" examples, even though they don't contribute as much to the euro's worth.

If I'm wrong I'd like to hear what I am overlooking. I mean I understand that the US arguably has more serious issues, but it doesn't seem like the euro is doing THAT much better.
 
i think this likely happens to some degree.
but when it comes to public finance, it is silly NOT to issue debt.

having to save up enough money before you can build a road is kind of silly, no?
 
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